The Impact of the US-China Trade Agreement on Gold and Bitcoin

Jakarta, Pintu News – On May 12, 2025, the United States and China announced an agreement to lower import tariffs for 90 days, marking a significant step in easing trade tensions between the world’s two largest economies. The move sparked mixed reactions in global financial markets, particularly in commodities such as gold and digital assets such as Bitcoin (BTC).

Gold Price Declines as Trade Tensions Ease

Gold prices have decreased by more than 3%, from $3,323 per ounce to around $3,215 per ounce, following the announcement of the trade deal between the US and China. This decline reflects reduced investor demand for safe haven assets such as gold, along with increased market optimism for global economic stability. The strengthening of the US dollar is also putting pressure on gold prices, as it makes the precious metal more expensive for holders of other currencies.

Analysts expect that gold prices could continue to come under pressure in the short term, especially if US economic data shows steady growth and contained inflation. However, lingering uncertainties regarding long-term trade negotiations and global monetary policy may limit further gold price declines.

Also Read: Bitcoin Approaches Rp1.74 Billion: Trend Analysis and Challenges May 2025

Bitcoin Price Stability Amid Market Changes

Meanwhile, Bitcoin (BTC) showed price resilience by remaining stable at around $102,389, despite reaching an intraday high of $105,525. This stability shows that investors still see Bitcoin as an attractive alternative asset, despite changing geopolitical and global economic risks. Bitcoin’s stable performance is also supported by increasing institutional adoption and investor interest in digital assets.

However, analysts warn that Bitcoin faces strong resistance around the $109,000 level, which is the previous record high. Further gains may require additional catalysts, such as positive developments in cryptocurrency regulation or increased adoption of blockchain technology globally.

Conclusion

The trade deal between the US and China has affected global financial markets in different ways. Gold prices have declined due to reduced demand for safe haven assets, while Bitcoin has shown stability amid changing market sentiment. Investors are advised to continue monitoring the progress of trade negotiations and other global economic indicators in making investment decisions.

Also Read: 3 Altcoins that Catch Analysts’ Attention Amid Positive Market Sentiment: Significant Growth!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Bitcoin.com News. Gold Slips as US-China Trade War Thaws; Bitcoin Holds Steady. Accessed May 13, 2025.
• Featured Image: Generated by AI